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Jonathan Chenevix-Trench has taken over as chairman of Morgan Stanley in Europe in the latest reshuffle of senior management at the US bank. He replaces Sir David Walker, who will stay on as a senior adviser.

The appointment of Chenevix-Trench, 44, marks a generational shift in the senior European management team at Morgan Stanley and provides some continuity after a year of management changes and senior departures.

In his new role, he will have executive responsibilities for Morgan Stanley's operations in Europe, the Middle East and Africa. In 2004, Morgan Stanley made revenues of $5.2bn (€4.4bn) in Europe, representing 22% of its global turnover.

He will be working closely with the new generation of divisional managers that have been appointed since John Mack returned to Morgan Stanley as chairman and chief executive in July.

These include Franck Petitgas and Jon Anda, co-heads of global capital markets, Jerker Johansson, global head of equities and co-head of sales and trading alongside Neal Shear, who is also global head of fixed income. Petitgas also runs European investment banking with Hans Schüttler.

One source close to Morgan Stanley said that Chenevix-Trench had been "trained up" for the role over the past 18 months. Walker, who had been chairman of Morgan Stanley International between 1994 and 2000, returned to the role in April last year as an interim replacement for Stephan Newhouse, who had been promoted to president of the bank globally and co-head of global institutional securities. Newhouse left over the summer as part of the row over the future of the former chief executive of Morgan Stanley, Philip Purcell.

Chenevix-Trench became a managing director in 1995, and ran the European fixed income business between 1999 and 2004. This year he became chairman of the institutional securities business and chairman of the European management committee.

His appointment, which will take effect at the end of this year, comes on the last day of Morgan Stanley's financial year. Today is also the deadline for directors to sign new employment agreements that will extend their notice periods.